Build vs. Buy: The Developer Portal Dilemma for Modern Engineering Teams

In today’s rapidly evolving technological landscape, software ecosystems are becoming increasingly complex. Developer portals have emerged as essential tools for engineering organizations striving to streamline workflows, enhance collaboration, and boost productivity. These centralized hubs provide a unified interface for developers to access tools, documentation, and services. However, engineering leaders and decision-makers often face a critical choice: should they build a custom developer portal in-house or opt for a ready-made solution?

This decision is significant and can have long-term implications on efficiency, costs, and innovation. According to the 2021 “State of DevOps” report by Puppet, organizations with high DevOps evolution are three times more likely to report better business outcomes than their lower-evolution counterparts [1]. Yet, the path to achieving such outcomes isn’t always straightforward.

The build vs. buy debate is long standing in the tech industry, but it gains new dimensions in the context of developer portals. This article explores both sides of the argument, examines the costs and benefits of each approach, and offers a framework to help organizations make an informed decision.

The Evolution of Developer Tooling

Cloud Computing and Its Impact on Developer Tools

The rise of cloud computing has fundamentally transformed how organizations develop, deploy, and manage applications. Gartner predicts that by 2022, cloud services will be essential for 90% of innovation in business [2]. This shift has led to the proliferation of cloud-based developer tools and services, enabling teams to collaborate more effectively and deploy applications more rapidly.

The Maturation of the Vendor Landscape

As cloud adoption accelerates, the vendor landscape for developer tools has matured significantly. The global developer tools market is projected to reach $15 billion by 2026, growing at a compound annual growth rate (CAGR) of around 4.1% from 2021 to 2026 [3]. Increased competition and innovation have resulted in more sophisticated and feature-rich offerings, providing organizations with a plethora of options to meet their specific needs.

The Rise of Composable Architecture and Integration

Composable architecture, which promotes building systems from interchangeable, modular components, has gained substantial traction. According to a 2020 Gartner report, organizations adopting composable application architectures will outpace competition by 80% in the speed of new feature implementation by 2023 [4]. This approach allows companies to integrate various tools and services seamlessly into their existing infrastructure, enhancing flexibility and scalability.

The Case for Building In-House

Perceived Benefits of Building Your Own Developer Portal

Some organizations are drawn to the idea of developing a custom developer portal due to several perceived advantages:

• Complete Customization: Tailoring the portal to meet specific workflows, processes, and organizational requirements.

• Full Control: Managing every aspect of the portal, from features to integrations, without relying on external vendors.

• Intellectual Property Ownership: Owning the proprietary solution, which could be considered a strategic asset.

Scenarios Where Building Might Make Sense

Building an in-house developer portal may be appropriate in certain situations:

• Unique Requirements: When off-the-shelf solutions do not meet the specialized needs of the organization.

• Strategic Alignment: If developing such tools aligns closely with the company’s core competencies and strategic objectives.

• Resource Availability: Organizations with substantial resources and expertise to dedicate to development and maintenance.

Hidden Costs and Challenges of the Build Approach

Despite the perceived benefits, building an in-house developer portal comes with significant challenges and hidden costs:

Infrastructure and Foundation Costs

Establishing the necessary infrastructure requires considerable investment. This includes setting up secure, scalable environments, continuous integration/continuous deployment (CI/CD) pipelines, and monitoring systems. According to a study by The Standish Group, only 31% of software projects succeed in meeting their objectives on time and within budget [5].

Talent Acquisition and Retention

The shortage of skilled developers is a well-documented issue. The 2020 Harvey Nash/KPMG CIO Survey found that 65% of technology leaders reported a skills shortage, particularly in areas like cybersecurity and enterprise architecture [6]. Recruiting and retaining the talent necessary to build and maintain a custom portal can be costly and challenging.

Outdated Quickly

Technology evolves rapidly, and custom-built solutions can quickly become outdated. A study by McKinsey & Company notes that technology debt can consume up to 20% of technology budgets dedicated to new products [7]. Without continuous investment, an in-house portal may struggle to keep pace with industry advancements.

Cost of Innovation and Keeping Up with Industry Trends

Staying competitive requires ongoing innovation. Organizations must invest in research and development to implement new features and adhere to best practices. This can divert resources from core business activities and may not be sustainable in the long term.

The Advantages of Buying a Developer Portal Solution

Speed to Market and Faster ROI

Purchasing a ready-made developer portal can significantly reduce implementation time. A pre-built solution can often be deployed in weeks rather than months or years, allowing organizations to realize a faster return on investment.

Access to Industry Best Practices and Continuous Improvement

Vendor solutions are typically developed by experts who stay abreast of industry trends and best practices. Customers benefit from regular updates, new features, and security enhancements without the overhead of maintaining the software themselves.

Scalability and Flexibility

Vendor-provided portals are designed to scale with the organization’s needs. Cloud-based solutions can handle increased workloads and user counts without significant additional infrastructure investment.

Focus on Core Competencies

By outsourcing the development and maintenance of the portal, organizations can focus their internal resources on activities that directly contribute to their core business objectives and competitive advantage.

Employee Engagement and Retention Benefits

Providing developers with modern, efficient tools can improve job satisfaction and retention. According to the 2021 “State of the Developer Nation” report by SlashData, developers value access to the latest tools 

and technologies, which can influence their choice of employer [8].

The OpsLevel Approach: A Best-of-Both-Worlds Solution

Overview of OpsLevel’s Developer Portal Offering

OpsLevel offers a comprehensive developer portal designed to help organizations manage and scale their microservices effectively. It provides features such as a centralized service catalog, ownership tracking, and customizable scorecards to ensure best practices are followed.

How OpsLevel Addresses Common Build vs. Buy Concerns

OpsLevel’s platform addresses key concerns that organizations might have:

• Customization: Offers flexible configuration options to tailor the portal to specific organizational needs.

• Integration: Supports integrations with popular tools and platforms, facilitating seamless workflows.

• Scalability: Built to handle the demands of growing organizations, ensuring performance and reliability.

The Benefits of Choosing OpsLevel

By selecting OpsLevel, organizations can:

• Accelerate Implementation: Deploy a robust developer portal quickly.

• Benefit from Expertise: Leverage OpsLevel’s focus on continuous improvement and adherence to best practices.

• Reduce Maintenance Overhead: Outsource maintenance and updates to OpsLevel, freeing internal resources.

• Enhance Developer Experience: Provide developers with a modern, efficient platform to improve productivity.

Making the Decision: A Framework for Evaluating Build vs. Buy

Assessing Your Organization’s Unique Needs and Capabilities

• Conduct a Needs Analysis: Identify the specific requirements and objectives for the developer portal.

• Evaluate Technical Capabilities: Assess whether the internal team has the necessary skills and bandwidth.

• Consider Future Growth: Plan for scalability and evolving needs.

Evaluating Total Cost of Ownership (TCO)

When comparing options, it’s crucial to consider all costs over the solution’s lifespan. Gartner suggests that hidden costs can cause custom software projects to exceed budgets by up to 200%[9].

Factors to Consider in TCO Calculation

• Initial Development Costs

• Ongoing Maintenance and Support

• Upgrades and Enhancements

• Training and Onboarding

• Opportunity Costs

Considering Long-Term Scalability and Maintenance

Organizations must consider the sustainability of maintaining a custom solution. The need for continuous updates and compliance with evolving standards can strain resources.

Aligning with Overall Business Strategy

The decision should support the organization’s strategic goals. Aligning IT initiatives with business objectives can enhance performance and competitive positioning.

Summary

The decision to build or buy a developer portal is complex and requires careful consideration of multiple factors, including costs, capabilities, and strategic alignment. While building in-house offers customization and control, it comes with significant hidden costs and challenges. Buying a ready-made solution like OpsLevel provides speed, expertise, and scalability, allowing organizations to focus on their core competencies.

By choosing a mature, flexible solution, companies can rapidly implement a developer portal that enhances productivity and supports growth. As technology continues to evolve, the ability to adapt quickly will be critical to maintaining a competitive edge.

Book a call today to see how OpsLevel can support your organization’s development processes and drive innovation.

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References

[^1]: Puppet. (2021). State of DevOps Report. https://puppet.com/resources/report/state-of-devops-report/

[^2]: Gartner. (2020). Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17% in 2020. https://www.gartner.com/en/newsroom/press-releases/2020-11-17-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-17-percent-in-2020

[^3]: MarketsandMarkets. (2021). Developer Tools Market by Tool (Version Control, Continuous Integration, Issue Tracking, Build Automation), Organization Size (SMEs, Large Enterprises), Deployment Type, Vertical (BFSI, IT & Telecom, Manufacturing) and Region - Global Forecast to 2026. https://www.marketsandmarkets.com/

[^4]: Gartner. (2020). Composable Enterprise Architectures to Drive Innovation. https://www.gartner.com/en/documents/3985493

[^5]: The Standish Group. (2015). CHAOS Report. https://www.standishgroup.com/

[^6]: Harvey Nash/KPMG. (2020). CIO Survey 2020. https://home.kpmg/xx/en/home/insights/2020/09/harvey-nash-kpmg-cio-survey-2020.html

[^7]: McKinsey & Company. (2017). A Road Map for Managing Technical Debt. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/a-road-map-for-managing-technical-debt

[^8]: SlashData. (2021). State of the Developer Nation 20th Edition. https://www.slashdata.co/free-resources/state-of-developer-nation-20th-edition

[^9]: Gartner. (2019). Avoiding the Hidden Costs of Custom Software Development. https://www.gartner.com/en/documents/3956687